February 25, 2024

Top Down: The 3 Biggest Tax Breaks — and What They Cost Us

Why else is getting rid of tax breaks a good idea? For one, economists say many of them slow growth by forcing individuals and businesses to waste time complying with the tax code. A tax code with lower rates and fewer loopholes would almost surely be more efficient. Meanwhile, from a political perspective, some Republicans who oppose just about any tax increase think cutting tax breaks is an acceptable way for the government to refill its coffers.

And yet these loopholes have become bigger in the last 20 years, mostly because tax breaks for individuals have grown. Business tax breaks, as a share of the economy, have not changed much but, at roughly $150 billion a year, remain significant.

To the left are details on the three largest permanent tax breaks — each of which has serious flaws. If Washington is finally going to get serious about the country’s long-term fiscal problems, there is no better place to start.

Article source: http://feeds.nytimes.com/click.phdo?i=c45e30b4ebb42dd664cf36c3d10dcfd5

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